No it looks fine, even when i click on motion. The footage still fits fine. Although I noticed now even when export it which square pixel aspect ratio, its still slightly distorted.
So i exported it a DV1/DV NTSC (0.9091) aspect ratio and now the footage looks fine. However…. now you see black bars running along the top and bottom of the footage, like the height isnt tall enough to fit this ratio. What the heck! I should go back to web design!